<b>Environmental ICMS: a state-government initiative for environmental protection</b> - doi: 10.4025/enfoque.v26i2.4820

Abstract

The evidence that environmental imbalances represent a serious and imminent threat to the future of mankindhas prompted concrete actions in the environmental field. One of these actions has been the creation of the“Environmental Sales Tax (ICMS)”, which is the focus of this study. It is based on the premise that theresponsible protection and management of natural resources can reverse the current state of environmentaldegradation, reaching a level of sustainable economic development. As an alternative to conciliate economicgrowth without destroying the environment, several Brazilian states have created specially protected areas,named conservation units. In addition to augmenting their revenues, the cities fulfill their role in contributingfor the improvement in quality of life within their communities. Based on this context, this study aims topresent the criteria for forwarding the Environmental ICMS in the city of Maringá. Based as a descriptiveand exploratory research study, it verified that by using an environmental criterion, the law rewards citiesthat adopt a conservationist policy and host conservation units within their borders. The results demonstratedthat the city of Maringá has received this incentive since 1991 due to the parks that already exist in that city. Furthermore, this revenue can be raised by using policies of management and conservation of these areas,as well as by including the city’s Natural Heritage Private Reserves. It can be concluded that the EnvironmentalICMS is an economic tool for fiscal incentive that can be easily implemented, as it is perfectly adapted to theBrazilian legal institutional structure.